Shares in Mercantile Ports and Logistics Ltd (LSE:MPL) rose 21% to 1.75p after the AIM-listed company said rival filings had revealed a competing bid for its Indian port debt was under consideration before its own settlement was annulled.
The company's challenge to the rejection of its settlement proposal for Karanja Terminal & Logistics is now scheduled to be heard before the National Company Law Tribunal in Mumbai on 1 July 2026.
At the centre of the dispute is the termination of Mercantile's One Time Settlement, a sanctioned deal under which it had been declared the successful bidder.
The company said it had deposited about ₹43 crore, or roughly £3.8 million, under the terms of that settlement.
Filings by the lenders and Prudent ARC now confirm that, while Mercantile's settlement remained active, Prudent ARC submitted a fresh binding offer of ₹520 crore, around £46 million, to the consortium of lenders.
The company said the rival offer was submitted and considered before its own settlement was annulled, despite it having won the original process and remaining within a payment period extending to 30 September 2025.
Mercantile said the disclosures materially altered the factual understanding of events and raised a fundamental question over whether it was ever intended to complete the settlement.
The company has been advised that, had the facts been known at the time, including during proceedings before the Delhi High Court, the outcome would likely have favoured it.
Pavan Bakhshi, managing director, said the admissions raised serious questions over transparency and fairness, and whether the company was ever given a genuine opportunity to complete the settlement.
He said the debt was ultimately transferred to the very party that had lost in the original process.
Bakhshi said the company would continue to pursue all available legal remedies to protect shareholder interests and recover value for stakeholders.
